Exhibit 12.1
W&T Offshore, Inc.
Ratio of Earnings to Fixed Charges
The following table sets forth our ratios of consolidated earnings to fixed charges for the periods presented:
| Year Ended December 31, |
| |||||||||||||||||
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
| |||||
| (in thousands except ratios) |
| |||||||||||||||||
| (unaudited) |
| |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes | $ | (292,396 | ) |
| $ | (1,247,702 | ) |
| $ | (16,120 | ) |
| $ | 80,096 |
|
| $ | 119,531 |
|
Add: Fixed charges |
| 93,063 |
|
|
| 104,870 |
|
|
| 87,193 |
|
|
| 85,902 |
|
|
| 63,441 |
|
Add: Amortization of capitalized interest |
| 5,207 |
|
|
| 40,158 |
|
|
| 4,538 |
|
|
| 4,380 |
|
|
| 1,526 |
|
Less: Capitalized Interest |
| (520 | ) |
|
| (7,256 | ) |
|
| (8,526 | ) |
|
| (10,058 | ) |
|
| (13,274 | ) |
Earnings before fixed charges | $ | (194,646 | ) |
| $ | (1,109,930 | ) |
| $ | 67,085 |
|
| $ | 160,320 |
|
| $ | 171,224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net of capitalized interest | $ | 92,271 |
|
| $ | 97,336 |
|
| $ | 78,396 |
|
| $ | 75,581 |
|
| $ | 49,994 |
|
Capitalized interest |
| 520 |
|
|
| 7,256 |
|
|
| 8,526 |
|
|
| 10,058 |
|
|
| 13,274 |
|
Portion of rental expense representative of an interest factor |
| 272 |
|
|
| 278 |
|
|
| 271 |
|
|
| 263 |
|
|
| 173 |
|
Total fixed charges | $ | 93,063 |
|
| $ | 104,870 |
|
| $ | 87,193 |
|
| $ | 85,902 |
|
| $ | 63,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of earnings to fixed charges | N/A |
| (1) | N/A |
| (2) | N/A |
| (3) |
| 1.9 |
|
|
| 2.7 |
|
(1) The ratio was not meaningful. Earnings were inadequate to cover fixed charges for the year ended December 31, 2016 by $287.7 million, which included a ceiling test write-down of oil and gas properties of $279.1 million and a gain on exchange of debt of $123.9 million. (2) The ratio was not meaningful. Earnings were inadequate to cover fixed charges for the year ended December 31, 2015 by $1,214.8 million, which included a ceiling test write-down of oil and gas properties of $987.2 million. 2015 was revised to incorporate the effect of unamortized capitalized interest on the ceiling-test write down (3) The ratio was less than one-to-one coverage. Earnings were inadequate to cover fixed charges for the year ended December 31, 2014 by $20.1 million.
|